Is there really an employer cost to purchase non-qualifying part-time school service?
Yes. The additional liability to PSERS created by the purchase of this type of service will be reflected in the actuarial employer contribution rate. So, in effect, all employers will be paying a prorated share of the total benefit cost for service purchased. There is not an immediate direct cost charged to employers (as in the case of non-credited school service) because a previous court decision made it unlawful for a policy change to result in a direct cost to the employer when there was no expectation of this cost when the service was rendered.
